Chavez devaluates Venezuela currency

[Bugs]

There's been a running argument on here about Senor Hugo Chavez, who stokes South American nationalism to 'white hot' as often as he can -- which is a lot. Some people say Chavez is a Messiah, sent to bring Cosmic Justice to Venezuela, in the form of a military-socialism with a nasty edge; there are others who insist he's a squat little military dictator who is trying to duplicate Castro's achievement.

Now it seems we are closer to an answer. Chavez has decreed that the value of Venezuelan currency ber cut to half of what it was the previous day.

Venezuelans rushed to the shops on Saturday, fearful of price rises after a currency devaluation that will let President Hugo Chavez boost government spending ahead of an election but feeds opposition charges of economic mismanagement.

In a bid to jump-start the recession-hit economy of South America's top oil exporter, Chavez on Friday announced a dual system for the fixed rate bolivar.

It devalues the currency to 4.3 and 2.6 against the dollar, from a rate of 2.15 per dollar in place since 2005, giving the better rate for basic goods in an attempt to limit the impact of the measure on consumer prices.

The opposition seized on fears that prices for imported goods will double as shoppers formed lines of more than a hundred people outside some stores in the capital Caracas. [...]

"By establishing the exchange rate at 4.3 bolivars per dollar, the quality of life for Venezuelans is automatically devalued since we now have half the money we had before," said Caracas Mayor Antonio Ledezma, a Chavez opponent.

http://www.reuters.com/article/idUSN096521320100109

Since the state oil company sells oil priced in American dollars, it puts the government in a much stronger fiscal position because it buys labour in Bolivars. He can use the money to nationalize the remaining big assets of the Venezuelan economy.

public dissatisfaction at frequent blackouts and water shortages and a 2.9 percent economic contraction in 2009, hope to strip Chavez of his legislative majority in September.

"Venezuela's decision to devalue the Bolivar culminates an event that the market has been anticipating for a long time," said Walter Molano, an analyst at BCP Securities. "It helps alleviate the country's fiscal woes and puts it on a sounder macroeconomic footing."

The measure is a relief for state oil company PDVSA, which has struggled to pay service providers and meet requirements to fund social projects since crude prices dropped sharply last year. It also makes Venezuelan businesses more competitive.

Holders of Venezuela's foreign debt are also pleased, since the devaluation improves government finances and lessens the need to issue more bonds.

However, Chavez risks taking a blow to his popularity ratings, which are about 50 percent, as prices for many products inevitably will rise in the country of 28 million people, which relies on imports for much of its consumption.

Finance Minister Ali Rodriguez said the devaluation will add 3 percent to 5 percent to inflation, already the highest in the Americas at 25 percent last year.

Comments?

Edited January 10, 2010 by Bugs

[blueblood]

There's been a running argument on here about Senor Hugo Chavez, who stokes South American nationalism to 'white hot' as often as he can -- which is a lot. Some people say Chavez is a Messiah, sent to bring Cosmic Justice to Venezuela, in the form of a military-socialism with a nasty edge; there are others who insist he's a squat little military dictator who is trying to duplicate Castro's achievement.

Now it seems we are closer to an answer. Chavez has decreed that the value of Venezuelan currency ber cut to half of what it was the previous day.

Since the state oil company sells oil priced in American dollars, it puts the government in a much stronger fiscal position because it buys labour in Bolivars. He can use the money to nationalize the remaining big assets of the Venezuelan economy.

public dissatisfaction at frequent blackouts and water shortages and a 2.9 percent economic contraction in 2009, hope to strip Chavez of his legislative majority in September.

Comments?

What a fool. His people suffer because of his rank stupidity.

[Shady]

This is from another thread, on a similar topic.

Many of the things that Chavez has done have worked for the benefit of the people - not only in Venezuela, but as a new agreement between the poor providers of natural resources and the rich nations who extract them.

Chavez is showing the world that the 3rd world nations do not have to accept the pittance that they are offered in exchange for their oil, minerals and access to their markets. They can do better - and that scares the shit out of the Peter Munks of the world.

Maple Leaf Web

Come'on KeyStone! Tell us how great of a job Chavez is doing!

[capricorn]

It's sad to read about what's happening in Venezuela. I was there in 1986 for a 3 week holiday. One highlight was riding on the 3-year old metro in Caracas, the pride of a thriving and beautiful city. Venezuelans were very enterprising. I was booked in a tourist resort in Cumana. I recall going to a restaurant in the nearby town and asking the waiter to call a taxi. Turns out, the waiter was also the taxi driver. Man, what a trip! I guess I went just in time.

[bill_barilko]

Even if they get rid of El Mono (The Monkey in Spanish) tomorrow the Venezuelan people have nothing but more suffering to look forward to in years to come.

[ToadBrother]

Even if they get rid of El Mono (The Monkey in Spanish) tomorrow the Venezuelan people have nothing but more suffering to look forward to in years to come.

I'm afraid your right. I don't think they can even get rid of Chavez. He will use his loyalists, and I'm quite sure the army, if need be, to take down any meaningful competition. He is a democrat in the same way Napoleon was a democrat, strategically using elections and plebiscites to look the great democrat, but underneath it all, he's just yet another Latin American populist-styled dictator. Chavez will be president as long as Chavez wants to, he has made sure of that.

[blueblood]

I'm afraid your right. I don't think they can even get rid of Chavez. He will use his loyalists, and I'm quite sure the army, if need be, to take down any meaningful competition. He is a democrat in the same way Napoleon was a democrat, strategically using elections and plebiscites to look the great democrat, but underneath it all, he's just yet another Latin American populist-styled dictator. Chavez will be president as long as Chavez wants to, he has made sure of that.

Which in my opinion makes Chavez disgusting, he is keeping his people poor on purpose and gives them scraps, which unfortunately the people love him for. What's even more unfortunate is that those people want this pathetic excuse for a leader and keep electing him. For a country floating on oil and in such proximity to the US, they should have a much higher standard of living.

Edited January 11, 2010 by blueblood

[Bugs]

Well, it isn't as if Chavez is all give and no take.

His fertile imagination, by itself, is a priceless contribution to South American culture. Chavez's latest artistic demand to Venezuela TV is to make 'socialist soap operas', probably starring a short stubby guy with no neck, and a nose that should be enshrined on a temple wall.

Venezuelan President Hugo Chavez said Sunday he has asked film producers to make "socialist soap operas," with government help if needed, because there's too much capitalism on television.

"A while ago, I was in Cuba and they broadcast soap operas there, not capitalist soap operas but with a social content, socialist" soap operas, Chavez told a group of filmmakers and scriptwriters guested on his weekly radio and television show, "Alo Presidente."

"I'm going to ask that we make socialist soap operas (in Venezuela), instead of capitalist ones."

The firebrand leftist leader offered government help to producers following his advice.

"We can also make good movies," he added. "Not capitalist movies that are poison and incite our children to take drugs and even push them into crime."

In 2006, Chavez opened Villa del Cine, a filmmaking center outside Caracas that produces full-length and short films and documentaries.

http://nz.entertainment.yahoo.com/100110/8/glzu.html

I'm wondering what the sex will be like in socialist soap operas.

Comments?

Edited January 11, 2010 by Bugs

[KeyStone]

This is from another thread, on a similar topic.

Maple Leaf Web

Come'on KeyStone! Tell us how great of a job Chavez is doing!

To those that don't follow Venezuela that closely, this doesn't look good.

And I am sure the Chavez haters and MSM can do a great job of creating 'sky is falling' articles in abundance.

But the truth is, this is a good move.

The exchange rate has been fixed in Venezuela for some time. However, the actual rate of exchange (known as the parallel rate), is two to three times higher. As a result, there are many loopholes, in which people can buy Bolivars at the lower rate, sell at the parallel rate into US dollars, and complete the cycle. It needs to change.

By devaluing the dollar, Chavez is bringing the bolivar back in line with the actual rates that it is trading for internationally, a move that will make it easier to get rid of the fixed rate, and allow a floating currency once again.

Economists always call for floating exchange rates, so they should be well pleased with Chavez's move here.

There was far too big of a gap between the government rate, and the parallel underground rate.

Generally, if this was any other country, the pundits would be applauding, but because it is Hugo Chavez, expect non-stop doom and gloom articles about it.

[KeyStone]

Even if they get rid of El Mono (The Monkey in Spanish) tomorrow the Venezuelan people have nothing but more suffering to look forward to in years to come.

Right.

Because Venezuela was swimming in riches before Chavez came along.

[KeyStone]

I'm afraid your right. I don't think they can even get rid of Chavez. He will use his loyalists, and I'm quite sure the army, if need be, to take down any meaningful competition. He is a democrat in the same way Napoleon was a democrat, strategically using elections and plebiscites to look the great democrat, but underneath it all, he's just yet another Latin American populist-styled dictator. Chavez will be president as long as Chavez wants to, he has made sure of that.

You're really drinking up the Western media kool-aid.

Do some research and see what independent election monitors had to say about the elections.

What did the Carter center say?

What did the OAS say?

What did the EU say?

[KeyStone]

Which in my opinion makes Chavez disgusting, he is keeping his people poor on purpose and gives them scraps, which unfortunately the people love him for. What's even more unfortunate is that those people want this pathetic excuse for a leader and keep electing him. For a country floating on oil and in such proximity to the US, they should have a much higher standard of living.

Wow, you're absolutely clueless.

Take a look around at what he is doing with the oil money.

He's investing in education, healthcare, social programs.

He's implemented UI, and maternity leave for the first time.

He's building infrastructure so Venezuela can't be sabotaged by private companies pouting that they can't make a killing at the expense of the Venezuelan people.

Literacy rates have skyrocketed. Poverty rates have declined.

Why is it that you think you know so much better what Venezuelans need than the people who have lived under Chavez for the last twelve years? They seem to like what he is doing. Shouldn't that mean something?

But hey, you're a cowboy, and you can just 'reckon' that he must be a bad guy. That's good enough for internet debate.

[Jerry J. Fortin]

Wow, you're absolutely clueless.

Take a look around at what he is doing with the oil money.

He's investing in education, healthcare, social programs.

He's implemented UI, and maternity leave for the first time.

He's building infrastructure so Venezuela can't be sabotaged by private companies pouting that they can't make a killing at the expense of the Venezuelan people.

Literacy rates have skyrocketed. Poverty rates have declined.

Why is it that you think you know so much better what Venezuelans need than the people who have lived under Chavez for the last twelve years? They seem to like what he is doing. Shouldn't that mean something?

But hey, you're a cowboy, and you can just 'reckon' that he must be a bad guy. That's good enough for internet debate.

I too am a fan of Chavez. He has done more for his people than any other leader in living memory there.

[Shady]

I too am a fan of Chavez. He has done more for his people than any other leader in living memory there.

How do you expect to be taken seriously? You denounce our (Canadian) economic system, and within the very same timespan, praise the actions of Hugo Chavez.

[Wilber]

This devaluation isn't that bad for a South American country. I was in Brazil in 93 when they were changing from the Cruzeiro to the Reais. You could still use the old notes but you had to knock off three zeros.

[blueblood]

Wow, you're absolutely clueless.

Take a look around at what he is doing with the oil money.

Take a look at the people of venezuela, they're broke ass losers with all of that oil money. That reeks of inferior management.

He's investing in education, healthcare, social programs.

He's implemented UI, and maternity leave for the first time.

He's building infrastructure so Venezuela can't be sabotaged by private companies pouting that they can't make a killing at the expense of the Venezuelan people.

He gets this money by letting foreign companies invest in infrastructure, then he goes around and nationalizes them which is essentially theft. Those private companies were investing a lot of dollars in Venezuela until El Presidente came in and turned off the tap, and look at them they've amounted to a big pile of monkey crap.

How do you screw up the economy of a country floating on oil with a coastline, within close proximity to US refineries? Chavez managed to pull that off.

Literacy rates have skyrocketed. Poverty rates have declined.

Why is it that you think you know so much better what Venezuelans need than the people who have lived under Chavez for the last twelve years? They seem to like what he is doing. Shouldn't that mean something?

Okay lets look at Alberta, and Kuwait, and Norway. There is no poverty in those areas, and they have well established literacy rates. If Chavez is such a good leader, why isn't a country that is floating on oil at the same level as these jurisdictions. Hell, Ireland in the 1980's was in the same boat as Venezuela, but they managed to become the freest country in the world and one of the richest, plus with no oil to boot. Yet somehow Venezuela is still a broke mess.

But hey, you're a cowboy, and you can just 'reckon' that he must be a bad guy. That's good enough for internet debate.

I'm a cowboy that knows a garbage system when I see one. Chavez is a braindead selfish ass and his people are poorer because of it.

Paris Hilton could run the Venezuelan economy better than Chavez.

I suggest you take a class in commerce and economics, because you need it.

Those dern rednecks and that there economics done outfoxed them commie bastards again. Hyuk hyuk hyuk.

Edited January 11, 2010 by blueblood

[Shady]

But hey, you're a cowboy, and you can just 'reckon' that he must be a bad guy. That's good enough for internet debate.

No, he's no cowboy. He just has two eyes, and a brain.

Chavez orders National Guard to stop price rises

CARACAS, Jan 10 (Reuters) - Venezuela's Hugo Chavez ordered soldiers to seek out businesses that raise prices after a sharp devaluation of the bolivar currency last week, saying he will expropriate firms that engage in price gouging.

Link

And we have idiots in this forum defending this type of action, while at the same time denouncing our system.

"Right now, there is absolutely no reason for anybody to be raising prices of absolutely anything," Chavez said on his weekly TV show

Link

LOL, how many leaders have their own TV shows? And how does he

know the micro-economic situations of all businsess, large and small? How does he come to the realization that there's no need for any raising of prices? Chavez has absolutely no knowledge about a real economy, about what it takes to create a business, let alone build it up to be successful. He has absolutely no idea what job creation actually consists of. And anyone who supports this thug, is in the same boat.

[blueblood]

No, he's no cowboy. He just has two eyes, and a brain.

Chavez orders National Guard to stop price rises

CARACAS, Jan 10 (Reuters) - Venezuela's Hugo Chavez ordered soldiers to seek out businesses that raise prices after a sharp devaluation of the bolivar currency last week, saying he will expropriate firms that engage in price gouging.

Link

And we have idiots in this forum defending this type of action, while at the same time denouncing our system.

"Right now, there is absolutely no reason for anybody to be raising prices of absolutely anything," Chavez said on his weekly TV show

Link

LOL, how many leaders have their own TV shows? And how does he

know the micro-economic situations of all businsess, large and small? How does he come to the realization that there's no need for any raising of prices? Chavez has absolutely no knowledge about a real economy, about what it takes to create a business, let alone build it up to be successful. He has absolutely no idea what job creation actually consists of. And anyone who supports this thug, is in the same boat.

But I am a cowboy...

[KeyStone]

"Take a look at the people of venezuela, they're broke ass losers with all of that oil money. That reeks of inferior management."

Well, they aren't that badly off compared to many of the countries of Latin America. Does their level of prosperity compete with Norway or UAE? No.

"He gets this money by letting foreign companies invest in infrastructure, then he goes around and nationalizes them which is essentially theft."

Well, no. Actually, most of the money comes from oil. I categorize the investors in Venezuela into two categories. There are the ones who want to syphon off the resources of Latin America (oil and mining companies), and there are the ones who actually want to invest in Venezuela (building hotels etc). Now Chavez was exactly right to demand more from the mining companies. Demanding more from all companies making a profit in Venezuela will have long-term negative effects on foreign investment, at least as long as Chavez is at the helm. However, Chavez doesn't care about foreign investment. He is replacing that by investing the proceeds from the oil industry - an investment that is much more stable and targeted towards the needs of the citizens of Venezuela.

As for it being theft, it depends. If he appropriates physical assets with no compensation - then yes, it is theft. As long as the company is free to leave with their employees and their physical assets then it is not theft. From what I understand, these companies, have made their money back tenfold in most cases already, and are offered compensation. This may not be the same, in ever case.

"Those private companies were investing a lot of dollars in Venezuela until El Presidente came in and turned off the tap, and look at them they've amounted to a big pile of monkey crap."

Yeah, well, I don't agree with everything he has done, but I think that the good outweighs the bad. It would be better if he had a more predictable economic climate. Business doesn't like unknowns. However, as I have said, he doesn't really care about foreign investment, when the state can replace that investment with its own dollars.

"How do you screw up the economy of a country floating on oil with a coastline, within close proximity to US refineries? Chavez managed to pull that off."

An economy is a lot more than just oil. Furthermore, it would stand to reason that if it is so easy to have a prosperous country if one has oil, than Venezuela must have been amazing during the reign of his predecessors. But, a quick look will reveal it was not so great. In fact, things have changed much for the better since Chavez took over.

"Okay lets look at Alberta, and Kuwait, and Norway. There is no poverty in those areas, and they hae well established literacy rates. If Chavez is such a good leader, why isn't a country that is floating on oil at the same level as these jurisdictions."

LOL. It's really not that simplistic. The success of an economy is made up of many things other than oil, and that doesn't just turn around in ten years.

Canada and Norway are both highly advanced nations boasting top education and health care. They have both been like that for fifty years. Venezuela is far from that, although it has been making strides under Chavez. The only reasonable comparison is Kuwait, but they produce a similar amount of oil, with only 10% of the population. I am sure that if the population of Venezuela was only three million, the people would all be doing quite well also. I notice you chose to leave out the oil producing nations of Iraq and Nigeria? Any particular reason?

"Hell, Ireland in the 1980's was in the same boat as Venezuela, but they managed to become the freest country in the world and one of the richest, plus with no oil to boot. Yet somehow Venezuela is still a broke mess."

Sure, Ireland got a big whack of cash from the EU deal, and promptly invested it into infrastructure and central planning to become an insurance mecca. It's a great story, but not something that every country can duplicate. The fact that Venezuela does not compare favourably to the most succesful nation in the past decade, does not make them a country of 'broke-ass losers'.

"I'm a cowboy that knows a garbage system when I see one. Chavez is a braindead selfish ass and his people are poorer because of it."

No, you're a cowboy that reads MSM as if it's the word of God, who doesn't have the ability to question anything that he sees in print.

"I suggest you take a class in commerce and economics, because you need it."

You're the Einstein that thinks devaluing the Bolivar is a bad thing.

"Those dern rednecks and that there economics done outfoxed them commie bastards again. Hyuk hyuk hyuk."

Perhaps you should wait until you win an argument before you start patting yourself on the back.

[blueblood]

Well, they aren't that badly off compared to many of the countries of Latin America. Does their level of prosperity compete with Norway or UAE? No.

Venezuela discovered oil in 1922, Kuwait in 1931, both countries were in the same boat at that era, that's their own fault socialists don't know how to run an economy. The numbers don't lie. Hell in 1969 is when they found oil in Norway.

There is no excuse for the lack of Venezuelan prosperity.

Well, no. Actually, most of the money comes from oil. I categorize the investors in Venezuela into two categories. There are the ones who want to syphon off the resources of Latin America (oil and mining companies), and there are the ones who actually want to invest in Venezuela (building hotels etc). Now Chavez was exactly right to demand more from the mining companies. Demanding more from all companies making a profit in Venezuela will have long-term negative effects on foreign investment, at least as long as Chavez is at the helm. However, Chavez doesn't care about foreign investment. He is replacing that by investing the proceeds from the oil industry - an investment that is much more stable and targeted towards the needs of the citizens of Venezuela.

As for it being theft, it depends. If he appropriates physical assets with no compensation - then yes, it is theft. As long as the company is free to leave with their employees and their physical assets then it is not theft. From what I understand, these companies, have made their money back tenfold in most cases already, and are offered compensation. This may not be the same, in ever case.

Alberta, Kuwait, and Norway have a much higher standard of living and much higher incomes than venezuela. Numbers don't lie. Chavez is a failure. His people are broke, yet they float on oil. The countries in my example allow foreign investment, and are richer for it. Why after 10 year in power are his people still poor? Why after oil hit 147 dollars is his country a toilet? Any CEO with that poor of performance would be fired.

Yeah, well, I don't agree with everything he has done, but I think that the good outweighs the bad. It would be better if he had a more predictable economic climate. Business doesn't like unknowns. However, as I have said, he doesn't really care about foreign investment, when the state can replace that investment with its own dollars.

Just like Mugabe did with his printing press. Brilliant economics, devalue the currency and screw over your populations purchasing power! And leftists wonder why Venezuela that floats on oil is as broke and pathetic as it is.

An economy is a lot more than just oil. Furthermore, it would stand to reason that if it is so easy to have a prosperous country if one has oil, than Venezuela must have been amazing during the reign of his predecessors. But, a quick look will reveal it was not so great. In fact, things have changed much for the better since Chavez took over.

The venezuelans went from throwing crap at each other to throwing crap at each other with socks on, wow what an improvement.

They could only get better, those other leftists left that country a mess. Yet Venezuela is still a crap hole that has squandered its oil wealth. Alberta, Kuwait, and Norway, knew how to spend their oil revenues responsibly, why can't Chavez?

Yeah, well, I don't agree with everything he has done, but I think that the good outweighs the bad. It would be better if he had a more predictable economic climate. Business doesn't like unknowns. However, as I have said, he doesn't really care about foreign investment, when the state can replace that investment with its own dollars.

His people suffer, while he grandstands to the Americans and threatens war with his neighbours. What a prize he is. And people thought George W. Bush was bad. Venezuela would be better off with Chavez in the crazy house where he belongs.

The state of venezuela does not have enough dollars to develop its oil reserves, that's why they are poor broke trash. They need foreign money, but don't want it.

LOL. It's really not that simplistic. The success of an economy is made up of many things other than oil, and that doesn't just turn around in ten years.

Ireland turned its economy around in 10 years without oil, why can't Chavez? Oh that's right he's a tin pot insane dictator. It is that simplistic, Chavez is a failure.

Canada and Norway are both highly advanced nations boasting top education and health care. They have both been like that for fifty years. Venezuela is far from that, although it has been making strides under Chavez. The only reasonable comparison is Kuwait, but they produce a similar amount of oil, with only 10% of the population. I am sure that if the population of Venezuela was only three million, the people would all be doing quite well also. I notice you chose to leave out the oil producing nations of Iraq and Nigeria? Any particular reason?

That's no excuse for Venezuela, with all that oil it sits on it could attract a lot of foreign investment making its population richer, which would bolster health care and education, they chose to piss it away.

Kuwait was a pile of sand before oil, Venezuela had more going for it before oil. Yet Kuwait knows how to manage itself. I leave out Iraq plus Nigeria and Iran because they are poor and also have tin pot dictators such as Chavez, notice a trend anywhere?

Sure, Ireland got a big whack of cash from the EU deal, and promptly invested it into infrastructure and central planning to become an insurance mecca. It's a great story, but not something that every country can duplicate. The fact that Venezuela does not compare favourably to the most succesful nation in the past decade, does not make them a country of 'broke-ass losers'.

Wrong, the cato institute called the cash injection a hindrance. Ireland got to where it was by slashing taxes, there was no meticulous socialist central planning. It was slash taxes and watch the sharks feast. Ireland made a killing, and with zero oil exports on top of it.

Venezuela has no excuse why it couldn't duplicate that. It had a large cheap work force, oil close to deep water port, and a shipping advantage to the US. The fact they had an imbecile like Chavez running the show is the icing on the cake. They're losers. Numbers don't lie.

No, you're a cowboy that reads MSM as if it's the word of God, who doesn't have the ability to question anything that he sees in print

I question the malarkey that your posting. I question the crap that comes out of Chavez's mouth, I question the fact that why a country that floats on oil, is its population so poor? I get my information from established and trusted media sources, not the tin-foil hat monthly newsletter like you do.

Anyone with any critical thinking skills realizes that's a management problem (Chavez)

You're the Einstein that thinks devaluing the Bolivar is a bad thing.

You take the purchasing power of a developing nation that floats on oil away and see how that works for you. Hyper inflation anyone?

Perhaps you should wait until you win an argument before you start patting yourself on the back.

My examples are successes and have the numbers to back it up, where are the numbers on venezuela's success? Socialism is a failure, ask the Soviets.

Edited January 12, 2010 by blueblood

[naomiglover]

Take a look at the people of venezuela, they're broke ass losers with all of that oil money. That reeks of inferior management.

They were rich and rolling in money before Chavez?

He gets this money by letting foreign companies invest in infrastructure, then he goes around and nationalizes them which is essentially theft.

He is stealing from who? Where was the oil money going before? Not to the people of Venezuela.

Those private companies were investing a lot of dollars in Venezuela until El Presidente came in and turned off the tap, and look at them they've amounted to a big pile of monkey crap.

Again, you are trying to give the impression that the people of Venezuela were living in better conditions before Chavez. Reality disagrees with you.

How do you screw up the economy of a country floating on oil with a coastline, within close proximity to US refineries? Chavez managed to pull that off.

The economy was never in a good condition.

Okay lets look at Alberta, and Kuwait, and Norway. There is no poverty in those areas, and they have well established literacy rates. If Chavez is such a good leader, why isn't a country that is floating on oil at the same level as these jurisdictions.

The real world is not like Simcity.

Hell, Ireland in the 1980's was in the same boat as Venezuela, but they managed to become the freest country in the world and one of the richest, plus with no oil to boot. Yet somehow Venezuela is still a broke mess.

I'm a cowboy that knows a garbage system when I see one. Chavez is a braindead selfish ass and his people are poorer because of it.

You need to read up on Venezuela and its history and its economy and pretty much everything else Venezuela related. Because you're making cowboys look really really bad,

Paris Hilton could run the Venezuelan economy better than Chavez.

I suggest you take a class in commerce and economics, because you need it.

Foxnews called and they want their empty and useless rant back.

[blueblood]

They were rich and rolling in money before Chavez?

They were poor then and are poor now. So much for socialism being the gift from heaven to save the venezuelans. 10 years and nothing but failure.

He is stealing from who? Where was the oil money going before? Not to the people of Venezuela.

He is stealing from the oil companies who have invested there in good faith and have signed agreements. They agree to invest in oil infrastructure for a piece of the pie. If the oil companies don't get their share of the pie, the gravy train stops. Some oil money was going to the companies and some was going to the gov't in terms of royalties, and some was going to pay venezuelan salaries. Sorry hun, oil costs money to take out of the ground.

Again, you are trying to give the impression that the people of Venezuela were living in better conditions before Chavez. Reality disagrees with you.

I am implying that the people in Venezuela live in crap conditions right now. Reality agrees with me. Refer to Norway, Kuwait, Ireland, Alberta (Canada). If socialism is so great, why can't Chavez make the lives of his people comparable to other oil producing nations?

The economy was never in a good condition.

Yet it still sucks, that's their own fault they have a garbage economy not the Americans.

The real world is not like Simcity.

In the real world, Ireland developed a capitalist mantra and got itself out of being a basketcase in a decade, why can't Chavez? Oh wait because he develops a garbage policy and cut himself off from the gravy train. Numbers don't lie.

You need to read up on Venezuela and its history and its economy and pretty much everything else Venezuela related. Because you're making cowboys look really really bad,

And you need to read up on how capitalism works and how the Western world has done well by embracing that system, because you are making leftists look really really bad.

Foxnews called and they want their empty and useless rant back.

Tin foil hat monthly called and they want their columnist back.

[naomiglover]

They were poor then and are poor now. So much for socialism being the gift from heaven to save the venezuelans. 10 years and nothing but failure.

He is stealing from the oil companies who have invested there in good faith and have signed agreements. They agree to invest in oil infrastructure for a piece of the pie. If the oil companies don't get their share of the pie, the gravy train stops. Some oil money was going to the companies and some was going to the gov't in terms of royalties, and some was going to pay venezuelan salaries. Sorry hun, oil costs money to take out of the ground.

I am implying that the people in Venezuela live in crap conditions right now. Reality agrees with me. Refer to Norway, Kuwait, Ireland, Alberta (Canada). If socialism is so great, why can't Chavez make the lives of his people comparable to other oil producing nations?

Yet it still sucks, that's their own fault they have a garbage economy not the Americans.

In the real world, Ireland developed a capitalist mantra and got itself out of being a basketcase in a decade, why can't Chavez? Oh wait because he develops a garbage policy and cut himself off from the gravy train. Numbers don't lie.

And you need to read up on how capitalism works and how the Western world has done well by embracing that system, because you are making leftists look really really bad.

Tin foil hat monthly called and they want their columnist back.

A country that took decades to ruin due to corrupt politicians and foreign corporations backed by their governments, who handed out the country's resources to everyone but the Venezuelan people cannot be fixed in a few years.

I don't know if Chavez and his policies will be able create the utopia they imagine they can create, but I'm not about sit here and blame the situation on Chavez because I refuse to turn a blind eye on the history of the region and how the country came to where it is today. I think Chavez actually believes he is helping the country of Venezuela. Unlike most of the past leaders who were helping themselves by supporting the foreign multinationals who have no interest in the well-being of the Venezuelans.

If you want to use Norway as an example, then you should look at the policies and the government, that many call 'socialist', that brought it to where it is. Here is a bit from wikipedia:

Norway's first female prime minister, Gro Harlem Brundtland of the Labour party, continued many of the reforms of her right-wing predecessor, while backing traditional Labour concerns such as social security, high taxes, the industrialization of nature, and feminism. By the late 1990s, Norway had paid off its foreign debt and had started accumulating a sovereign wealth fund.

[blueblood]

A country that took decades to ruin due to corrupt politicians and foreign corporations backed by their governments, who handed out the country's resources to everyone but the Venezuelan people cannot be fixed in a few years.

Ireland was a country that was kicked in the balls by the brits for centuries. On top of that, had a revolution and instability for the first 80 yrs. of the 20th century, hell there were even terrorists there. No excuse for venezuela.

I don't know if Chavez and his policies will be able create the utopia they imagine they can create, but I'm not about sit here and blame the situation on Chavez because I refuse to turn a blind eye on the history of the region and how the country came to where it is today. I think Chavez actually believes he is helping the country of Venezuela. Unlike most of the past leaders who were helping themselves by supporting the foreign multinationals who have no interest in the well-being of the Venezuelans.

Chavez claims that capitalism is evil and that socialism is the best system in the world. By his claims of how great socialism is, shouldn't venezuela be the best country in the world? The foreign multinationals pay royalties to foreign governments, it's a percentage because of the cost to develop those resources and the cost of doing business. No sane business person is going to give 100% of their profits back to the same country. However those foreign multinationals spend money in a country, provide jobs to its citizens, pay taxes, and pay royalties. That's how it works. Ireland knows this and got rich, Kuwait knows this and got rich, Alberta knows this and got rich.

If you want to use Norway as an example, then you should look at the policies and the government, that many call 'socialist', that brought it to where it is. Here is a bit from wikipedia:

Norway's first female prime minister, Gro Harlem Brundtland of the Labour party, continued many of the reforms of her right-wing predecessor, while backing traditional Labour concerns such as social security, high taxes, the industrialization of nature, and feminism. By the late 1990s, Norway had paid off its foreign debt and had started accumulating a sovereign wealth fund.

Norway has a stable, government that doesn't steal money from foreign investors. However Norway is one of the most expensive countries in the world to live in. Alberta has had a right wing gov't for almost 40 years, and they are the first and only debt free province in Canada. On top of that, Albertans are far more free than Norweigans are. Venezuela doesn't come into the freedom mix because of the whole tin pot dictatorship there.

[Shady]

He is stealing from the oil companies who have invested there in good faith and have signed agreements. They agree to invest in oil infrastructure for a piece of the pie. If the oil companies don't get their share of the pie, the gravy train stops. Some oil money was going to the companies and some was going to the gov't in terms of royalties, and some was going to pay venezuelan salaries. Sorry hun, oil costs money to take out of the ground.

Exactly, and it's not just the oil indusrty he's doing that with. He pretends to want foreign investment, and then after they spend millions of their own dollars building facilities and infastructure related to their particular business, he then screams HA HA, MINE NOW! And takes it from them. You can only pull that shit off once, and the end result means that he costs his country billions and billions of dollars per year in foreign investment, and business, and jobs for Venezuelan citizens.

If Chavez would operate on good faith, he could attract large numbers of foreign investors, the way top economic country's do. If he would allow Venezuela to develop its own free-market capitalist economy, and with the natural resources they already have, Venezuela could quickly become a vibrant economy, with a much higher standard of living. Heck, they could be the South American version of Alberta, but on a much greater scale. Unfortunately though, they have a retarded monkey running the show, clamping down on everyone's freedoms, driving out money and jobs, and devaluing their already small purchasing power.

But he hates America, so he's okay for the lefties!